Stephen Roach: Tragic Turn of Events in U.S.

Roach: We're still in a emergency mode since the banking crises the fed lacks guts to normalise policy. The labor force participation rate is low, our labor statistics seriously ignore those who have given up looking for work. The employment to population ratio is terribly low. In a higher pitched tone he goes on "the wages are not rising, even if we had full employment where's the wage inflation?"

Stephen Roach was with Morgan Stanley for 30-plus years and was the investment bank's chief economistsince 1991, serving as head of the firm's global team of economists in New York, London, Tokyo, Hong Kong, Singapore, and Paris.